Global Foreign Direct Investment Flows: The Role of Governance Infrastructure |
| |
| Institution: | 1. School of Economics and Management, Chang׳an University, Nan Er Huan Zhong Duan, Xi׳an 710064, PR China;2. Department of Economics, Abbottabad University of Science & Technology, Tehsil Havelian, District Abbottabad, Khyber Pakhtunkhwa, Pakistan;3. School of Printing and Packaging, Xi׳an University of Technology, Xi׳an, Shaanxi, PR China;1. Manchester Metropolitan University Business School, UK;2. Swansea University, Wales, UK;3. Clark Atlanta University, USA;1. Antai College of Economics and Management, Shanghai Jiao Tong University, Shanghai 200030, China;2. School of Economics and Management, Tongji University, Shanghai 200092, China;1. Helmut Schmidt University Hamburg, Germany;2. University of Kiel, Germany;3. Kiel Institute for the World Economy, Germany |
| |
| Abstract: | It is widely argued that a country’s economic performance over time is determined to a great extent by its political, institutional and legal environment. We refer to these institutions and policies as the governance infrastructure of a country. We utilize newly developed indices to examine the effects of governance infrastructure on both foreign direct investment (FDI) inflows and outflows for a broad sample of developed and developing countries over 1995–97. In addition, we examine the role of other forms of infrastructure including human capital and the environment. The results clearly indicate that governance infrastructure is an important determinant of both FDI inflows and outflows. Investments in governance infrastructure not only attract capital, but also create the conditions under which domestic multinational corporations emerge and invest abroad. It would appear that investments in governance infrastructure are subject to diminishing returns, so that the benefits, in terms of inflows, are most pronounced for smaller and developing economies. |
| |
| Keywords: | |
| 本文献已被 ScienceDirect 等数据库收录！ |
|
